Take The Salesperson Raise Test
There is one key business driver that all growth-directed companies have in
common.
- It is not their product or service features
and functions.
- It is not their operations,
technical or engineering development or delivery capabilities.
- It is not their unlimited access to business funding.
- It is not the strength of their corporate brand.
The key business driver which is shared by growth-directed companies
is that they recognize their most valuable asset is the sales and marketing
distribution channel.
Everyone reading this article today has lost deals to competitors who out
sold you . . . yet your prospect offering was better. Today, more than ever,
the strength of your business success depends on the strength of your sales
and marketing teams.
Provided to Paul
DiModica by eMarketer.com under contract.
Should you pay your salespeople more money? (All of the salespeople
reading this article probably just shook their heads "yes.") Unfortunately,
it is a little more complicated than that. In most companies, fully loaded
sales costs are 8% to 15% of gross revenue, so arbitrarily raising your
sales team's compensation program does not make sense.
Nevertheless, not correctly paying your professional and successful
salespeople -- your most valuable business asset -- is
bad business. Just because salespeople hit their assigned sales quota
does not mean they are professional salespeople. It could be luck, timing,
inheriting a gravy account, or perhaps someone's uncle Luwigi is big
buyer.
To determine if your sales team members (individually) are professional salespeople
and deserve a raise, take the salesperson raise test.
Salesperson Raise Test
-
Does the salesperson cold call at least 20 new prospects per day?
___Yes ___No
-
Is the salesperson's sales forecasts at least 85% accurate
month-to-date?
___Yes ___No
-
Does the salesperson invest at least .05%-1% of his/her own annual
gross income in sales training programs and seminars (books, teleseminars,
audio CD's, etc.)?
___Yes ___No
-
Does the salesperson have a college or university
degree?
___Yes ___No
-
Is the salesperson
high maintenance and difficult to deal with?
___Yes ___No
-
Is a maximum of 50% of the salesperson's total
income derived from his/her base salary or advanced draw?
___Yes ___No
-
Has the salesperson hit at least 95% of his/her assigned sales quota or
target for two years in a row?
___Yes ___No
-
Does the salesperson update your corporate customer
relationship management system (CRM) or contact manager daily?
___Yes ___No
-
Does the salesperson prepare his/her expense reports on time with all
of the supporting detail?
___Yes ___No
-
Is the salesperson's average selling price after negotiation
within 10% of suggested retail or original proposal pricing when his/her
deals are closed?
___Yes ___No
Correct Answers
1. Yes
2. Yes
3. Yes
4. Yes |
5. No
6. Yes
7. Yes
8. Yes |
9. Yes
10. Yes |
80% and Above
If you have salespeople who score in this range, you should consider
giving them an increase in their sales compensation. These people are sales
professionals and treat their career as such. They invest in their own career,
they are always near or at their sales quota, and they understand the metrics
of being successful salespeople. You cannot afford to lose these business
assets and it will cost you more than the raise you do not give them to replace
them. In fact, if you have salespeople who score 100% on this test . . . you
should OVERPAY THEM.
60% to 70%
These salespeople are strong company assets who are still learning the characteristics
needed to become professional salespeople. Strong in some areas and weak
in others, they should be monitored for increased company professionalism
to see if they can increase their score and merit a raise.
50% and below
These salespeople do not treat their careers in sales as a profession. They
may hit their sales targets but that does not make them professional. Often,
these account managers fell into their current sales position and stayed
because they like the money and the independence. Account managers
who score in this category are half-cycle salespeople and do not deserve
a raise.
"Sales is a premeditated sport and professionalism is always
premeditated." --Paul DiModica
Writers Resource Box
| Paul DiModica is the author of the best-selling
books: Value Forward Selling, Value Forward Marketing, and Sales Management Power Strategies.
He is founder of Value Forward Group and addresses
thousands of executives each year on the subjects
of sales, marketing and strategy, including
executives and staff of Wells Fargo, Lanier Corporate, Adobe, IBM, Tyco/American Dynamics, Navitaire and many others. His content-rich
workshops and strategy sessions on leadership, sales, management
and marketing bring about immediate changes
and long-term results. For more information, visit http://www.valueforward.com |
|
